Monty Corporation had the following stockholders' equity accounts on January 1, 2020: Common Stock ($5par) $500,000, Paid-in Capital in Excess of ParCommon Stock $210,000, and Retained Earnings $110,000. In 2020, the company had the following treasury stock transactions.

Mar.1 Purchased6,000shares at $8per share.

June 1 Sold1,500shares at $13per share.

Sept.1 Sold2,000shares at $10per share.

Dec.1 Sold1,500shares at $6per share.

Monty Corporation uses the cost method of accounting for treasury

stock. In 2020, the company reported net income of $34,000.

Completed : Part A - Journalize the treasury stock transactions,

and prepare the closing entry at December 31, 2020, for net income.

DateGeneral journalDebitcredit

1-MarTreasury stock ((6000*$8)$48,000

cash$48,000

Purchased 6000 shares at $8

1-JunCash (1500*13)$19,500

Treasury stock (1500*$8)$12,000

Paid in capital from treasury$7,500

1500 shares sold at $13

Explanation:

DateGeneral journalDebitcredit

1-SepCash (2000*$10)$20,000

Treasury stock (2000*$8)$16,000

Paid in capital from treasury stock$4,000

sold 2000 shares at $10

1-DecCash (1500*$6)$9,000

Paid in capital from treasury stock(1500*2)$3,000

Treasury stock$12,000

sold 1500 shares at $6

31-DecIncome summary$34,000

Retained earnings$34,000

(Net income being transferred to retained earnings)

Part B: Open accounts for Paid-in Capital from Treasury Stock, Treasury Stock, and Retained Earnings.

Part C: The stockholders' equity section for Monty Corporation at December 31, 2020